Eduardo, who appears in the picture in the last row with black sunglasses and a black cap, is a member of the Communal Bank "Los Copihues", located in Villarrica. The members of this Communal Bank own businesses such as a foamy craftsmanship store, fabric sales or an auto repair shop.
Eduardo's business is a computer and electronics tech service, which he started 5 years ago. He bought it out of necessity, with an existing client portfolio.
His challenge is to be able to reinvent and expand the business. He needs the money to buy a digital photographic printer to print t-shirt patterns. He knows he will do very well because he has no competition in Villarrica. What he likes the most about working with the lending partner, Fondo Esperanza, is the organization with the fellow members from the Communal Bank.

Additional Information

More information about this loan

This loan targets populations in financially underserved regions of Chile. Thanks to its numerous branches, Fondo Esperanza is present nationwide and offers loans to micro-entrepreneurs in a country known for its limited microfinance industry. This Kiva loan enables entrepreneurs to maintain their current businesses in areas where Fondo Esperanza is the only available and accessible financial institution.

About Fondo Esperanza

Fondo Esperanza (FE) is a private non-profit organization that supports entrepreneurship by providing micro-credit and training to people living in poverty in well over 100 cities throughout Chile. By providing these services, FE aims to improve the living conditions of the entrepreneurs and their families. In 2010, FE provided loans to more than 41,000 entrepreneurs. It utilizes a communal banking model in which groups of 18 to 25 clients meet on regularly and guarantee each other’s loans. The members use their portion of the loan to create or expand their own businesses. In the group meetings, clients receive training though the FE Entrepreneurship School, which enhances clients’ personal and business skills and ability to work in groups.

This is a Group Loan

In a group loan, each member of the group receives an individual loan but is part of a larger group of individuals. The group is there to provide support to the members and to provide a system of peer pressure, but groups may or may not be formally bound by a group guarantee. In cases where there is a group guarantee, members of the group are responsible for paying back the loans of their fellow group members in the case of delinquency or default.

Kiva's Field Partners typically feature one borrower from a group. The loan description, sector, and other attributes for a group loan profile are determined by the featured borrower's loan. The other members of the group are not required to use their loans for the same purpose.